Practical Problem 03
Practical problem | Q 3 | Page 341
Rohini Company Limited issued 25000 equity shares of ₹ 100 each payable as follows –
On Application ₹ 20
On Allotment ₹ 30
On First call ₹ 20
On Second & Final call ₹ 30
Applications were received for 22,000 equity shares and allotment of shares were made to them. All money was received by the company.
Pass Journal Entries in the books of Rohini Co. Ltd.
SOLUTION:
Journal Entries in the books of Rohini Company Limited | ||||
Date | Particulars | L.F | Debit Amount (₹) | Credit Amount (₹) |
1 | Bank A/c ……………………………………………………………………..Dr. | 4,40,000 | ||
To Equity Share Application A/c | 4,40,000 | |||
( Being equity share application money on 22,000 shares @ ₹ 20 per share received) | ||||
2 | Equity Share Application A/c ………………………………………..Dr | 4,40,000 | ||
To Equity Share Capital A/c | 4,40,000 | |||
( Being equity share application money on 22,000 equity shares @ ₹ 20 per share transferred to Equity Share Capital Account) | ||||
3 | Equity Share Allotment A/c………………………………………… Dr. | 6,60,000 | ||
To Equity Share Capital A/c | 6,60,000 | |||
( Being allotment money on 22,000 equity shares @ ₹ 30 per share due) | ||||
4 | Bank A/c………………………………………………………………………. Dr | 6,60,000 | ||
To Equity Share Allotment A/c | 6,60,000 | |||
( Being equity share allotment money on 22,000 shares @ ₹ 30 per share received) | ||||
5 | Equity Share First Call A/c…………………………………………… Dr. | 4,40,000 | ||
To Equity Share Capital A/c | 4,40,000 | |||
( Being equity share first call money on 22,000 shares @ ₹ 20 due) | ||||
6 | Bank A/c ……………………………………………………………………..Dr. | 4,40,000 | ||
To Equity Share First Call A/c | 4,40,000 | |||
( Being equity share first call money on 22,000 shares @ ₹ 20 per share received) | ||||
7 | Equity Share Second & Final Call A/c………………………….. Dr. | 6,60,000 | ||
To Equity Share Capital A/c | 6,60,000 | |||
( Being equity share second & final call money on 22,000 shares @ ₹ 30 due) | ||||
8 | Bank A/c ………………………………………………………………………..Dr | 6,60,000 | ||
To Equity Share Second & Final Call A/c | 6,60,000 | |||
( Being equity share second & final call money on 22,000 shares @ ₹ 30 per share received) | ||||
4400000 | 4400000 | |||